Hisense Electric Co., Ltd purchases the production, brand, R&D & operation service of Toshiba TV on 14th November, 2017.
Hisense will purchase 95% stock shares of Toshiba Visual Solutions Corporation (TVS), a wholly owned subsidiary of Toshiba Corporation, for 12.9 billion Japanese Yen with Toshiba retaining 5% stock holding. Hisense will obtain the TVS businesses including production, research and development, sales functions, as well as license to use the Toshiba brand for a period of 40 years for visual solution partners operating in Europe, South East Asia and other markets.
With 142 years of history, Toshiba is highly ranked on the international global technology brand list’s. TVS primarily operates in TV and variety of ancillary products, including commercial and advertisement display products. The purchase also secures two factories in Japan and hundreds of Toshiba R&D employees as well as a significant IP portfolio relating to TV technology business patents for image quality and acoustics.
According to the IHS, sales of Toshiba TV ranked No.3 in Japanese market in 2016; Hisense TV holds the highest market share in Japan for non-Japanese brands. Collectively both brands’ cumulative market share reach over 20% after the transaction.
Mr. Liu Hongxin, the CEO of Hisense Group, said that Hisense would optimise TVS’s resources on R&D, supply chain or global sales channels, cooperate with and support each other in display technology, provide competitive content operation services for smart TVs for the global market and accomplish fast growth in Japanese market.
With the benefit of this acquisition, Hisense will develop and enlarge its international strategy of TV business in R&D, branding and marketing by operating under multiple brands.